SHARES in JD Wetherspoon leapt more than five per cent as it declared it is likely to generate record sales in its current financial year, after booking “exceptionally strong” trading over the two May bank holiday weekends.

The pub giant said profits for the full year are expected to come in at the upper end of market expectations.

But the company, which also declared sales at Easter were its highest ever, warned inflation “remains a more intractable issue”.

Wetherspoon, which has around 70 pubs in Scotland, said it witnessed its “busiest-ever Saturday” during the traditional bank holiday weekend at the start of May.

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That was followed by “slightly less strong” over the coronation weekend, which saw a “noticeably quiet Saturday”. Wetherspoon suggested the coronation may have benefited sales more in the off-trade than pubs, clubs, and restaurants.

Like-for-like sales increased by 9.1% in the 13 weeks to April 30 compared with the same period in its last full financial year before the pandemic, which ended on July 28, 2019. Wetherspoon said. Year-to-date sales increased by 6.4% compared with the same year.

Founder and chairman Tim Martin said: “Lockdowns and associated restrictions have had more profound and longer-lasting consequences than most economists, politicians and commentators predicted.

“Sales in the last quarter have continued their positive momentum, although inflation, especially in labour, energy, and food costs, remains a more intractable issue."

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“In order to bear down on inflation, political parties should encourage free enterprise, rather than a reliance on additional regulations. A lack of understanding, among some senior politicians, about the need to encourage a successful free market economy, presents a real threat to the future prosperity of the country.

“The company expects profits in the current financial year to be towards the top of market expectations.”

Wetherspoon said it currently has 30 trading pubs on the market for sale or under offer. It has a trading estate of 834 pubs at present, and had 42,839 employees at the end of the third quarter, 940 more than at the end of its 2019 financial year.

Russ Mould, investment director at stockbroker AJ Bell, said: “If you were picking a survivor from the apocalyptic conditions faced by pubs during the pandemic then Wetherspoons might well be it. It has scale, some balance sheet heft and prominent sites as well as a cheap and cheerful offering with mass-market appeal.

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“However, the last few years really haven’t played out like that. Even as we emerged from Covid, its town and city centre locations have been a problem due to falling footfall as people work from home and a model focused on volume rather than profitability has left the company heavily exposed to rapidly rising costs.

“More recently though the shares have started to rally and today’s third-quarter update suggests the business might be kicking into gear as it enjoyed its busiest-ever Saturday during the May Day Bank Holiday weekend and a record Easter. Significantly, the positive momentum is tangible enough for the company to guide for profit at the top end of expectations for the year to 31 July.

“As usual chair Tim Martin uses his soapbox to call out politicians and give his views on how they could tackle inflation. Pressures on household budgets could be a positive tailwind for Wetherspoons as its cheap and cheerful prices appeal to more people.”

Shares closed up 39p, or 5.2%, at 783.5p.